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With 15 years of immersion in the world of personal finance, Ashley Kilroy simplifies financial concepts for individuals striving toward financial security. Her expertise has been showcased in reputable publications including Rolling Stone, SmartAsset and Money Talks News. She's committed to equipping readers with the knowledge needed to achieve their financial goals.
Ashley Kilroy
With 15 years of immersion in the world of personal finance, Ashley Kilroy simplifies financial concepts for individuals striving toward financial security. Her expertise has been showcased in reputable publications including Rolling Stone, SmartAsset and Money Talks News. She's committed to equipping readers with the knowledge needed to achieve their financial goals.
As a former claims handler and fraud investigator, Jason Metz has worked on a multitude of complex and multifaceted claims. The insurance industry can be seemingly opaque, and Jason enjoys breaking down confusing terms and products to help others make well-informed decisions.
Reviewed
Jason Metz
As a former claims handler and fraud investigator, Jason Metz has worked on a multitude of complex and multifaceted claims. The insurance industry can be seemingly opaque, and Jason enjoys breaking down confusing terms and products to help others make well-informed decisions.
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.
If you’re a small business owner in Texas, you want to find the best business insurance. If you ever have to file a claim for a problem like stolen business property or a workplace accident, the right coverage from a reputable company will prove to be valuable.
We looked at the official complaint records of 20 insurers that have the largest market share for business insurance in Texas to help you find the best small business insurance in Texas.
Read more
Best Small Business Insurance in Texas 2024
Summary: Best Texas Small Business Insurance Ratings
| Company | Forbes Advisor Rating | Complaint level | AM Best financial strength rating | LEARN MORE | ||||
|---|---|---|---|---|---|---|---|---|
| AIG |  |
5.0 |  |
Extremely low | A (Excellent) | Compare Quotes | Compare rates from participating partners via SmartFinancial's website. | |
| Cincinnati |  |
5.0 |  |
Extremely low | A+ (Superior) | Compare Quotes | Compare rates from participating partners via SmartFinancial's website. | |
| CNA |  |
5.0 | |
Extremely low | A (Excellent) | Compare Quotes | Compare quotes from participating carriers via Gallagher | |
| Farmers |  |
5.0 | |
Extremely low | A (Excellent) | View More | ||
| Liberty Mutual |  |
5.0 | |
Extremely low | A (Excellent) | View More | ||
| The Hanover |  |
5.0 | |
Extremely low | A+ (Superior) | Compare Quotes | Compare rates from participating partners via SmartFinancial's website. | |
| Allstate |  |
4.5 |  |
Very low | A+ (Superior) | View More | ||
| Berkshire Hathaway |  |
4.5 | |
Very low | A++ (Superior) | Compare Quotes | Compare rates from participating partners via SmartFinancial's website. | |
| Travelers |  |
4.5 | |
Very low | A++ (Superior) | Compare Quotes | Compare quotes from participating carriers via Gallagher |
Ratings are based on complaints lodged in 2022 with state insurance departments across the country about commercial liability, commercial property and commercial auto coverage.
Types of Business Insurance in Texas
If you’re shopping for small business insurance in Texas, you’ll want to make coverage decisions based on your industry and the size of your business. The common types of small business insurance you’ll find include general liability insurance, professional liability insurance and workers compensation insurance.
Texas General Liability Insurance
General liability insurance covers businesses for accidental property damage and bodily injuries to others. It also covers claims such as slander, libel or copyright infringement. General liability insurance pays for legal costs, such as attorney fees, judgments and settlements.
Texas Professional Liability Insurance
Professional liability insurance covers businesses from claims of mistakes in your professional services, even if the claim has no merit. It pays for legal fees, settlements and judgments. For example, if a client claims advice from your consulting business caused them financial harm, your professional liability insurance will pay your legal costs.
Professional liability insurance is also called errors and omissions insurance.
Texas Workers’ Compensation Insurance
Texas workers’ compensation insurance covers your employee’s lost wages, medical bills and other expenses if they get injured or fall due to work-related tasks. Although many states mandate that businesses have workers’ compensation insurance, Texas does not.
Other Types of Texas Business Insurance
You’ll likely need to add other types of small business insurance to cover the risks that your industry faces. For example, you’ll want to cover business property such as your building, inventory and office equipment.
A good place to start is with a business owners policy (BOP). A BOP combines general liability insurance with commercial property insurance and business interruption insurance. It’s generally cheaper to buy a BOP compared to buying each coverage separately. Here’s what they cover:
- Commercial property insurance: This covers the physical property of your small business for problems like theft, severe weather and fire damage. Commercial property insurance covers items like office furniture, business records, inventory and supplies.
- Business interruption insurance: If you are unable to open due to a problem covered by your policy (such as a fire), business interruption insurance covers your lost income.
You can add additional coverage types to your BOP as needed. Here are some more coverage types to consider:
- Builder’s risk insurance. This provides property coverage for structures and buildings that are under construction. Builders risk insurance is also called “course of construction insurance.”
- Commercial auto insurance: If you use a vehicle for work purposes, you’ll need commercial auto insurance. Your personal auto insurance won’t cover work-related accidents.
- Commercial umbrella insurance: This kicks in when your general liability limits are exhausted. For example, if your general liability limit is $500,000 and you get sued for $750,000, your commercial umbrella insurance would cover the $250,000 shortfall.
- Cyber liability insurance: This covers cyberattacks and data breaches. Cyber liability insurance pays for expenses like data recovery, investigative services and legal costs.
- Directors and officers (D&O) insurance: This liability insurance covers decisions made by company directors, officers or board members. If someone files a lawsuit against your business, directors and officers insurance covers their legal expenses.
- Inland marine insurance. This covers materials and products that are being transported on land by train or truck. Inland marine insurance pays for property that has been stolen, lost or damaged.
- Medical malpractice insurance: This covers claims resulting in patient injury or death, including medication errors. Professionals who may need medical malpractice insurance include acupuncturists, counselors, dentists, nurses, optometrists, physicians and therapists.
- Product liability insurance. If one of your products causes harm to someone or someone’s property, product liability insurance covers the costs resulting from lawsuits or claims.
- Technology errors and omissions insurance: This covers claims made by customers against technology businesses. Small businesses that may need technology errors and omissions insurance include computer consultants, IT contractors, software developers and website developers.
Cost of Business Insurance in Texas
The average cost of general liability insurance in Texas is $42 per month, according to Insureon. Workers’ comp in Texas cost an average of $31 per month and professional liability insurance cost an average of $59 per month.
Your own small business insurance costs will depend on several factors, including:
- Annual revenue.
- Number of employees.
- The coverage types you choose.
- Your policy limits and deductibles.
- Your industry.
How to Get Business Insurance in Texas
With all the available coverage options, shopping for small business insurance in Texas might feel overwhelming. To simplify the process, here are a few steps to follow.
- Pinpoint the coverage you need. A business owners policy is a great start, but you’ll likely need to add more coverage types to address the risks that your industry faces. For example, if you have a consulting business, you’ll want to add professional liability insurance.
- Shop around for coverage. Business insurance costs vary among insurers, so it’s a good idea to get business insurance quotes from several different companies. You can work with an independent insurance agent to help you find the best coverage and price.
- Review your business risk annually. As your business grows, you could face new risks and need additional coverage. For example, if your business adds a delivery service, you’ll need to add commercial auto insurance.
Methodology
To find the best small business insurance in Texas, we analyzed large Texas business insurance companies based on complaint 2022 data for commercial liability, commercial property insurance and commercial auto insurance. Complaint data is based on complaints upheld by state insurance departments across the country and collected by the National Association of Insurance Commissioners.
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